Dear Department of Justice,
As the gas prices in our area, NJ, gone up steadily from $1.39 to now $2.19 for NO meaningful reason since economic situation is still very bad, the demand of gas has been very low, oil price steady, I suspect gas companies may be in an oligopoly arrangment that violates US Anti Trust Law, according to Microeconomics professor at Rutgers University.
Because gas is such an inelastic product, most American have no choice to absorb the price hike, but oligopoly is like monopoly and duopoly that created huge "deadweight loss" that hurts the economy and consumers in a huge way.
Below are detail information that I know with energy market research from UC Berkeley and listed based on the questions of DOJ.
Cheng
---------------------------------------------------------------------------------
What are the names of companies, individuals, or organizations that are involved?
// I do not know the names, but as a consumer monitoring gas price like gasbuddy.com I feel some invisible hands behind the scene to orchestra the gas price up.
How do you believe they have violated the federal antitrust laws? (For details on federal antitrust laws, see Antitrust Laws and You.)
// If you keep a detail look at the gas price, it increases a few cents REGULARLY every week for past few months; it appears to be COOPERATED, ORCHISTRATED and OLIGOPOLY manner of price setting which is violating the Anti Trust Laws.
Can you give examples of the conduct that you believe violates the antitrust laws? If so, please provide as much detail as possible.
// If I were the DOJ investigator, I would obtain all consumer posted gas price data from GasBuddy.com for past months and analyze the corelation of the gas prices. DOJ needs to find out why gas price almost double while economic situation is bad and gas consumption is very low.
What is the product or service affected by this conduct? Where is the product manufactured or sold, or where is the service provided?
// When gas industry teamed up to gauge the gas price up, many daily products cost increased, from supermarket grocery, to restaurant, to subway cost, to many other things that transportation is a must.
Who are the major competitors that sell the product or provide the service?
// There seemed to be NO major competitors, all gas stations seemed to raise their price as if some big hand behind ordering them to. In fact, that's why US Anti Trust Laws. The law wants all business to compete so that the production will be the most cost effective, and the consumers will benefit the most. If there is monopoly, duopoly or oligopoly, then there will be "deadweight loss" in production gain and consumers pay much higher cost than supposed to be.
What is your role in the situation in question?
// I am just a concerned US citizen, and I feel deeply painful every week I went to gas station to get gas. I filed an Anti Trust Laws violation complaint last year but did not hear back any result from DOJ yet. But, at least, the oil price was proven later it was NOT due to demand and supply. My observation was correct.
Who is harmed by the alleged violations? How are they harmed?
// All Americans are harmed by the oligopoly of gas industry. They are harmed by cutting down travel, and cities and states losing tourists also got worsen economy, hotel, restaurant, museums, ...etc all sufferred fewer visitors, and state got insufficient sales taxes due to fewer travel. They are harmed because all gas related products all increased the price, e.g. subway ticket, train pass, ...etc. American auto industry is also a big victim that their cars won't sell. I believe DOJ should not allow gas industry to function like oligopoly and gas price hike again.
What should DOJ do to solve this Anti Trust Laws case?
// DOJ should make gas industry fully compete. Just like in 1984, when AT&T was dominant to set the long distance price that costed American 40 cents per minute, now less than 1 cent. DOJ broke up AT&T into 8 companies to make them compete fully to drive down the telecommunication cost of Americans. DOJ should take similar actions or more creative ones to promote competitions, not oligopoly, of gas industry, and drive down the transportation cost of American.
Tuesday, July 28, 2009
Tuesday, May 12, 2009
DOJ Should Investigate Origopoly of Gas Industry
Dear Department of Justice,
As the gas prices in our area, NJ, gone up steadily from $1.39 to now $2.19 for NO meaningful reason since economic situation is still very bad, the demand of gas has been very low, oil price steady, I suspect gas companies may be in an oligopoly arrangment that violates US Anti Trust Law, according to Microeconomics professor at Rutgers University.
Because gas is such an inelastic product, most American have no choice to absorb the price hike, but oligopoly is like monopoly and duopoly that created huge "deadweight loss" that hurts the economy and consumers in a huge way.
Below are detail information that I know with energy market research from UC Berkeley and listed based on the questions of DOJ.
Cheng
---------------------------------------------------------------------------------
What are the names of companies, individuals, or organizations that are involved?
// I do not know the names, but as a consumer monitoring gas price like gasbuddy.com I feel some invisible hands behind the scene to orchestra the gas price up.
How do you believe they have violated the federal antitrust laws? (For details on federal antitrust laws, see Antitrust Laws and You.)
// If you keep a detail look at the gas price, it increases a few cents REGULARLY every week for past few months; it appears to be COOPERATED, ORCHISTRATED and OLIGOPOLY manner of price setting which is violating the Anti Trust Laws.
Can you give examples of the conduct that you believe violates the antitrust laws? If so, please provide as much detail as possible.
// If I were the DOJ investigator, I would obtain all consumer posted gas price data from GasBuddy.com for past months and analyze the corelation of the gas prices. DOJ needs to find out why gas price almost double while economic situation is bad and gas consumption is very low.
What is the product or service affected by this conduct? Where is the product manufactured or sold, or where is the service provided?
// When gas industry teamed up to gauge the gas price up, many daily products cost increased, from supermarket grocery, to restaurant, to subway cost, to many other things that transportation is a must.
Who are the major competitors that sell the product or provide the service?
// There seemed to be NO major competitors, all gas stations seemed to raise their price as if some big hand behind ordering them to. In fact, that's why US Anti Trust Laws. The law wants all business to compete so that the production will be the most cost effective, and the consumers will benefit the most. If there is monopoly, duopoly or oligopoly, then there will be "deadweight loss" in production gain and consumers pay much higher cost than supposed to be.
What is your role in the situation in question?
// I am just a concerned US citizen, and I feel deeply painful every week I went to gas station to get gas. I filed an Anti Trust Laws violation complaint last year but did not hear back any result from DOJ yet. But, at least, the oil price was proven later it was NOT due to demand and supply. My observation was correct.
Who is harmed by the alleged violations? How are they harmed?
// All Americans are harmed by the oligopoly of gas industry. They are harmed by cutting down travel, and cities and states losing tourists also got worsen economy, hotel, restaurant, museums, ...etc all sufferred fewer visitors, and state got insufficient sales taxes due to fewer travel. They are harmed because all gas related products all increased the price, e.g. subway ticket, train pass, ...etc. American auto industry is also a big victim that their cars won't sell. I believe DOJ should not allow gas industry to function like oligopoly and gas price hike again.
What should DOJ do to solve this Anti Trust Laws case?
// DOJ should make gas industry fully compete. Just like in 1984, when AT&T was dominant to set the long distance price that costed American 40 cents per minute, now less than 1 cent. DOJ broke up AT&T into 8 companies to make them compete fully to drive down the telecommunication cost of Americans. DOJ should take similar actions or more creative ones to promote competitions, not oligopoly, of gas industry, and drive down the transportation cost of American.
As the gas prices in our area, NJ, gone up steadily from $1.39 to now $2.19 for NO meaningful reason since economic situation is still very bad, the demand of gas has been very low, oil price steady, I suspect gas companies may be in an oligopoly arrangment that violates US Anti Trust Law, according to Microeconomics professor at Rutgers University.
Because gas is such an inelastic product, most American have no choice to absorb the price hike, but oligopoly is like monopoly and duopoly that created huge "deadweight loss" that hurts the economy and consumers in a huge way.
Below are detail information that I know with energy market research from UC Berkeley and listed based on the questions of DOJ.
Cheng
---------------------------------------------------------------------------------
What are the names of companies, individuals, or organizations that are involved?
// I do not know the names, but as a consumer monitoring gas price like gasbuddy.com I feel some invisible hands behind the scene to orchestra the gas price up.
How do you believe they have violated the federal antitrust laws? (For details on federal antitrust laws, see Antitrust Laws and You.)
// If you keep a detail look at the gas price, it increases a few cents REGULARLY every week for past few months; it appears to be COOPERATED, ORCHISTRATED and OLIGOPOLY manner of price setting which is violating the Anti Trust Laws.
Can you give examples of the conduct that you believe violates the antitrust laws? If so, please provide as much detail as possible.
// If I were the DOJ investigator, I would obtain all consumer posted gas price data from GasBuddy.com for past months and analyze the corelation of the gas prices. DOJ needs to find out why gas price almost double while economic situation is bad and gas consumption is very low.
What is the product or service affected by this conduct? Where is the product manufactured or sold, or where is the service provided?
// When gas industry teamed up to gauge the gas price up, many daily products cost increased, from supermarket grocery, to restaurant, to subway cost, to many other things that transportation is a must.
Who are the major competitors that sell the product or provide the service?
// There seemed to be NO major competitors, all gas stations seemed to raise their price as if some big hand behind ordering them to. In fact, that's why US Anti Trust Laws. The law wants all business to compete so that the production will be the most cost effective, and the consumers will benefit the most. If there is monopoly, duopoly or oligopoly, then there will be "deadweight loss" in production gain and consumers pay much higher cost than supposed to be.
What is your role in the situation in question?
// I am just a concerned US citizen, and I feel deeply painful every week I went to gas station to get gas. I filed an Anti Trust Laws violation complaint last year but did not hear back any result from DOJ yet. But, at least, the oil price was proven later it was NOT due to demand and supply. My observation was correct.
Who is harmed by the alleged violations? How are they harmed?
// All Americans are harmed by the oligopoly of gas industry. They are harmed by cutting down travel, and cities and states losing tourists also got worsen economy, hotel, restaurant, museums, ...etc all sufferred fewer visitors, and state got insufficient sales taxes due to fewer travel. They are harmed because all gas related products all increased the price, e.g. subway ticket, train pass, ...etc. American auto industry is also a big victim that their cars won't sell. I believe DOJ should not allow gas industry to function like oligopoly and gas price hike again.
What should DOJ do to solve this Anti Trust Laws case?
// DOJ should make gas industry fully compete. Just like in 1984, when AT&T was dominant to set the long distance price that costed American 40 cents per minute, now less than 1 cent. DOJ broke up AT&T into 8 companies to make them compete fully to drive down the telecommunication cost of Americans. DOJ should take similar actions or more creative ones to promote competitions, not oligopoly, of gas industry, and drive down the transportation cost of American.
Wednesday, October 1, 2008
Section 8 is the Key to Solve Subprime Housing Mortgage Problem
Contact your Senator or House Rep to provide financial support of HUD to expand Section 8 voucher program to cover homeowners facing foreclosure. This will immediately and cost effectively restore credit of American financial systems. Why?
1. Subprime mortgage problem due to many American families not able to pay their mortgage on time. With expanded Section 8 program cover, only 30% income used for mortgage payment, Section 8 voucher cover the rest. Doing so will immediately restore the value of all mortgage back securities, and all derivatives involved, so are stock value of all banks and financial companies. It will also immediately removes millions of homes listing for sale on the market, and, therefore, stablize the housing value.
2. This will be temporary and limited as general Section 8 program did because the amount of voucher will reduce as time goes when the family income increases to be able to pay the mortgate all by themselves. Besides, homeowners grappling with mortgages for their own residences represent a far smaller percentage of the overall mortgage crisis. And, if these families were to be evicted and become homeless, HUD would still have to handle the problem thru Section 8, may be paying more on Section 8 voucher.
3. The Section 8 worked since 1974 that the vouchers will flow from families under foreclosure, to mortgage holders, to banks and insurance companies, and eventually generate lots of tax back to the government. The cash will flow many more hands from Main St to Wall St and generate huge economic gain.
4. There is no need to rewrite nor renegotiate any mortgage contract, prime or subprime or any type; credits in all levels and securities will be restored immediately.
If you love this country and would like to help, you want to act now. Be creative and innovative, if you can not reach your House Rep or Senator, try your mayor or governor or your realtor or broker, or forward this to all your friends and colleagues.
1. Subprime mortgage problem due to many American families not able to pay their mortgage on time. With expanded Section 8 program cover, only 30% income used for mortgage payment, Section 8 voucher cover the rest. Doing so will immediately restore the value of all mortgage back securities, and all derivatives involved, so are stock value of all banks and financial companies. It will also immediately removes millions of homes listing for sale on the market, and, therefore, stablize the housing value.
2. This will be temporary and limited as general Section 8 program did because the amount of voucher will reduce as time goes when the family income increases to be able to pay the mortgate all by themselves. Besides, homeowners grappling with mortgages for their own residences represent a far smaller percentage of the overall mortgage crisis. And, if these families were to be evicted and become homeless, HUD would still have to handle the problem thru Section 8, may be paying more on Section 8 voucher.
3. The Section 8 worked since 1974 that the vouchers will flow from families under foreclosure, to mortgage holders, to banks and insurance companies, and eventually generate lots of tax back to the government. The cash will flow many more hands from Main St to Wall St and generate huge economic gain.
4. There is no need to rewrite nor renegotiate any mortgage contract, prime or subprime or any type; credits in all levels and securities will be restored immediately.
If you love this country and would like to help, you want to act now. Be creative and innovative, if you can not reach your House Rep or Senator, try your mayor or governor or your realtor or broker, or forward this to all your friends and colleagues.
Friday, September 26, 2008
Increase FDIC insurance limit from $100,000 to $500,000 will prevent most bank fail.
Contact your Senator or House Rep to pass a bill to raise FDIC insurace limit from $100,000 to, say, $250,000 like IRA or even better $500,000 ($100,000 was set in 80's and not adjusted with inflation. This will prevent hundreds of banks from failure? Why?
1. Washington Mutual, the largest saving and loans just failed due to $16.7B deposit writhdrawn in last 9 days from account over $100,000. If the FDIC limit were $500,000, this amount should be reduced dramatically, and WaMu will not fail at the first place.
2. With higher amount of FDIC insurance, FDIC could levy more insurace fee from all 8,500 banks, and many healthy banks could contribute more to cover hundreds of weaker banks. The fund shall be increased from current $45B level.
If you believe you love this country and would like to help, you want to act now. Be creative and innovative, if you can not reach your House Rep or Senator, try your mayor or governor or your bank branch manager or CEO, or forward this to all your friends and colleagues.
1. Washington Mutual, the largest saving and loans just failed due to $16.7B deposit writhdrawn in last 9 days from account over $100,000. If the FDIC limit were $500,000, this amount should be reduced dramatically, and WaMu will not fail at the first place.
2. With higher amount of FDIC insurance, FDIC could levy more insurace fee from all 8,500 banks, and many healthy banks could contribute more to cover hundreds of weaker banks. The fund shall be increased from current $45B level.
If you believe you love this country and would like to help, you want to act now. Be creative and innovative, if you can not reach your House Rep or Senator, try your mayor or governor or your bank branch manager or CEO, or forward this to all your friends and colleagues.
Tuesday, June 17, 2008
DOJ should investigate Anti Trust Law Violation of Major Oil Companies in the US.
As we see the gas price kept going up because oil companies lack of enough competitions. All gas stations own by major oil companies such as ExxonMobil have gas price skyrocketing, while small unname gas stations used to provide the lowest gas price in town went out of business. I believe Department of Justice should launch investigation of Anti Trust Law Violation of major oil companies in the nation.
Back in 1984 when Americans had to pay 30 to 40 cents per minute for domestic long distance call, while AT&T's employees had free breakfast and CEO enjoy huge salary and bonus. DOJ eventually proved that AT&T violate Anti Trust Law and broke up the company into 8 companies. Thereafter, long distance call cost drop and innovative technologies invented by smaller competing telephone companies, and today the cost drop to less than 1 cent per minute.
I believe DOJ may find Oil Companies have seriously violated Anti Trust Law and when they are broken up into several smaller competing companies, the gas price will then drop down to affordable level, and innovative energy solutions will then be quickly invited and invested by small competitors. For example, DOJ should not let oil companies doing gas refinery to run gas stations. All ExxonMobil gas stations should not be own by ExxonMobile, and so on.
Any patriotic and concerned citizens should file report to Department of Justice and forward this message to all.
Subject RE: DOJ should investigate Anti Trust Law violation of major Oil Companies in the US.
From ATR-OPS Citizen Complaint Center < Antitrust.Complaints@usdoj.gov >
Date Wednesday, June 18, 2008 11:38 am
Dear Concerned Citizen:
Thank you for contacting the Antitrust Division of the U.S. Department of Justice with your concerns regarding oil companies in the US. The Citizen Complaint Center will review your complaint, and if there are any potential antitrust concerns or violations we will forward it to the appropriate legal staff for further review. We have your information on file and should the legal staff need further information, they may contact you in the future. If you have not done so already, you may also wish to contact the Department of Energy's gas watch:
We appreciate your interest in the enforcement of federal antitrust laws.
Sincerely,
Citizen Complaint Center
Antitrust Divison
Department Of Justice
Back in 1984 when Americans had to pay 30 to 40 cents per minute for domestic long distance call, while AT&T's employees had free breakfast and CEO enjoy huge salary and bonus. DOJ eventually proved that AT&T violate Anti Trust Law and broke up the company into 8 companies. Thereafter, long distance call cost drop and innovative technologies invented by smaller competing telephone companies, and today the cost drop to less than 1 cent per minute.
I believe DOJ may find Oil Companies have seriously violated Anti Trust Law and when they are broken up into several smaller competing companies, the gas price will then drop down to affordable level, and innovative energy solutions will then be quickly invited and invested by small competitors. For example, DOJ should not let oil companies doing gas refinery to run gas stations. All ExxonMobil gas stations should not be own by ExxonMobile, and so on.
Any patriotic and concerned citizens should file report to Department of Justice and forward this message to all.
Subject RE: DOJ should investigate Anti Trust Law violation of major Oil Companies in the US.
From ATR-OPS Citizen Complaint Center < Antitrust.Complaints@usdoj.gov >
Date Wednesday, June 18, 2008 11:38 am
Dear Concerned Citizen:
Thank you for contacting the Antitrust Division of the U.S. Department of Justice with your concerns regarding oil companies in the US. The Citizen Complaint Center will review your complaint, and if there are any potential antitrust concerns or violations we will forward it to the appropriate legal staff for further review. We have your information on file and should the legal staff need further information, they may contact you in the future. If you have not done so already, you may also wish to contact the Department of Energy's gas watch:
We appreciate your interest in the enforcement of federal antitrust laws.
Sincerely,
Citizen Complaint Center
Antitrust Divison
Department Of Justice
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